Module 3 Climate-related physical risks
In Module 3, you will learn more about climate-related physical risks and how they may affect your entity. Physical risks can be event driven (acute physical risk) or from longer-term shifts in climatic patterns (chronic physical risk).
What will I learn?
The module begins by looking at how climate change risk and impact are defined by the Intergovernmental Panel on Climate Change (IPCC), including the key concepts of hazard, exposure and vulnerability. It then provides detail on the distinction between acute and chronic physical risks.
You will then learn about the main categories of acute physical risk that may impact entities in Australia, including both current and future risks. You will also learn how Australian entities may be affected indirectly by climate-related impacts and risks in other parts of the world.
This module also includes 3 case studies, providing practical examples of how acute and chronic physical risks may impact Australian entities, and how a physical impact occurring overseas might disrupt an entity’s value chain.
Finally, the module provides a summary of public sources of information that you may find helpful to assess your entity’s exposure to climate-related physical risks.
Learning outcomes
By the end of this module, you will be able to:
- describe the key concepts underpinning climate-related physical risks
- explain the main types of acute physical risk facing entities in Australia
- apply the concept of risk transmission, understanding how climate impacts overseas may affect Australian entities, and
- locate and use information to support you in assessing your entity’s climate-related physical risks.